After disposing of the shares, the family will continue to hold 135 354 720 ordinary shares in Pick n Pay.
The Ackerman family, through Ackerman Investment Holdings, announced on Tuesday that it will sell the majority of its stake in the Pick n Pay Group. The shares the family will be selling are approximately 8.5%.
Pick n Pay said the family “wishes to settle the third-party funding raised to support Pick n Pay’s restructuring and recapitalisation, together with the associated professional fees and other costs, including 16 months of servicing that funding”.
This comes after the founder’s son, Gareth Ackerman, stepped down as Pick’n Pay’s chairman, a move that will reduce the family’s oversight of the retailer.
Ackerman sells 64 million shares
The Ackerman family will dispose of more than 64 million ordinary shares in Pick n Pay. At current market prices (around R27 a share), this stake is valued at R1.7 billion.
After disposing of the shares, the family will continue to hold 135 354 720 ordinary shares in Pick n Pay.
The group says “the Ackerman Family remains fully committed to Pick n Pay, to [CEO] Sean Summers and his leadership team and to the company’s turnaround plan and growth strategy”.
“The Ackerman Family will continue to be an anchor shareholder and long-term investor in Pick n Pay.”
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Ackerman family voting interest
The group said the disposal of the Placement Shares and the corresponding loss in the voting rights of the attached “B” shares will result in the Ackerman Family’s aggregate voting interest decreasing from 49.0% to 36.8% and aggregate economic interest decreasing from 26.7% to 18.2%.
The Ackerman family reduced their percentage of voting rights from 52% to 49% in 2024, marking the end of the family’s control of the retailer. After this move, the family lost the right to nominate the chairman, CEO, and CFO.
Pick n Pay was founded in 1967 by Raymond Ackerman and his wife after buying four stores in Cape Town. He served as CEO till 1999 and stepped down as chairman in 2010, making way for his son, Gareth, to take over.
Pick n Pay restructure
The Ackerman family supported the turnaround of Pick n Pay in 2024 by providing R1.1 billion in equity support during its two-step recapitalisation programme.
The retailer raised R4 billion in capital with a rights offer last year, which was more than 100% oversubscribed.
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